Exclusive | Licence in accountant’s name: How South Delhi hotel owner bypassed rules

Police said the owner purchased the building four years ago and allegedly expanded it illegally.

South Delhi hotel fireDelhi Police arrests co-owner of Hotel Flourish Stays, Lovkesh Bajaj, in connection with the Malviya Nagar fire incident in which 21 people lost their lives, in New Delhi. (Photo: ANI/AP)

After the arrest of the owner of Flourish Stays B&B in South Delhi where a fire killed 21 people on Wednesday, the Delhi Police are looking into his accountant in whose name the licence to operate the facility was allegedly obtained.

During the investigation, police found that the building was purchased in 2022 by Lavkesh Bajaj, a resident of Saket, from a person who had been running a garment business from the premises. At the time, the property was a three-storey building, sources said.

After acquiring the property, Bajaj converted it into a Bed and Breakfast (B&B) establishment, seeing a high demand of foreign patients and medical tourists in this area.

Under the Delhi government’s earlier scheme, a B&B facility is required to be owned by a private homeowner. To meet this criterion, police said Bajaj allegedly obtained the licence in the name of his accountant, Jay Mishra, who also manages Bajaj’s other properties.

Delhi Malviya Nagar Fire. Local people attempt to douse a fire at a hotel in New Delhi, India, Wednesday, June 3, 2026. (AP Photo/Manish Swarup)

“While applying for the licence, Bajaj showed in the documents that the property belonged to Mishra and that he lived there,” a police source said.

Given the steady stream of foreign patients visiting Max Hospital, located across the property, Bajaj allegedly decided to expand the building by adding more floors and rooms. The property eventually grew from six rooms to 26 rooms spread across six levels, including the ground floor and five additional floors.

The B&B Scheme had allowed homeowners to register their residences as legal tourist accommodations. The scheme was introduced during the 2010 Commonwealth Games. Since then, many homeowners in areas like Karol Bagh and Paharganj have converted their residential properties into B&B establishments. Licences under the scheme are issued by the Delhi Tourism Department.

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The Indian Express has seen a list of Bed and Breakfast establishments in South Delhi, in which Flourish Stays is listed at number 88 among 133 registered facilities. The owner’s section mentions  Jay Mishra. It says it is a silver category property  with registration up to May 2, 2027.

Firefighters rescue a foreign national from a hotel fire in New Delhi, India, Wednesday, June 3, 2026. (AP Photo/Manish Swarup) Firefighters rescue a foreign national from a hotel fire in New Delhi, India, Wednesday, June 3, 2026. (AP Photo/Manish Swarup)

According to police sources, Bajaj allegedly misused the B&B scheme by illegally increasing the number of rooms from six to 26 and by obtaining the licence in another person’s name while projecting him as the property’s owner.

Bajaj is expected to be produced before a court after noon on Thursday. Police will seek his custody to recover property-related documents and ascertain how he allegedly managed to violate regulations without attracting the attention of civic agencies.

Police said Jay Mishra live in Raipur Khurd in North Delhi, where the police team has conducted raids but found him missing.

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